Century Casinos subsidiary Century Resorts Alberta has entered into a definitive agreement to sell the casino operations of Century Casino Calgary for CAD $10m plus a three-year quarterly earn out.
The CAD $10m was paid at the execution of the definitive agreement and is non-refundable, but subject to working capital and other adjustments. CRA will continue to operate Century Sports (sports bar, bowling and entertainment) and to own the real estate.
The agreement contemplates that CRA will enter into a lease agreement with the buyer for the Calgary premises. The lease will have an annual net rent of approximately CAD $480,000 and a term of three years.
“This transaction immediately strengthens our balance sheet,” Erwin Haitzmann and Peter Hoetzinger, Co-CEOs of Century Casinos remarked. “The Calgary casino is one of our smaller operations, contributing $8.4m in net operating revenue and $1.2m in Adjusted EBITDA (circa half from the casino operations we are selling and half from sports bar, bowling and entertainment operations we will continue operating) in 2019.”
The transaction, which is expected to close in fall 2020, is subject to approval by the Alberta Gaming, Liquor and Cannabis Commission.